Monday, April 23, 2007

Unit 2: Market dominance in Dutch beer and EU reaction

The EU has discovered a cartel operating amongst Dutch beer producers

http://www.tutor2u.net/newsmanager/templates/?a=2319&z=1

a) What is a cartel?
b) Why was this cartel formed?
c) What type of market failure does this represent?
d) What action has the EU taken?
e) Do you think this action is sufficient? What other actions could they have taken?

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